Last U.S. PE Middle Market Report of the year
Dealmaking in the MM continues to flourish, GPs have taken particular interest in tech investments due to the sector's high level of growth, which is outpacing the broader market. Take-privates and divestitures were also a major focus in the quarter as PE firms have taken advantage of companies that performed poorly in the public markets or needed to sell off non-core assets. These sizable transactions helped bolster the median deal size, which sits at an all-time high YTD. To read more, click here.
Join us in Montréal for the fifth edition of our SelectUSA Canada Conference, the premier event for Canadian companies expanding in the United States.
The United States welcomes Canadian investors of all sizes, including established multinationals, small or medium-sized enterprises, and high-growth start-ups. See below for agenda:
The SelectUSA Canada Conference provides an exclusive, one-day opportunity for Canadian companies to learn more about setting up or expanding a business in the United States. Registration for Canadian companies includes:
AmCham Social Impact Awards for U.S. Thanksgiving Dinner
AmCham Toronto's most significant event during the year is their annual U.S Thanksgiving Celebration, which we hold during the third Thursday in November. This year, they will hold their event on the evening of November 21 at the National Club in Downtown Toronto.
At last year's Thanksgiving Celebration they started a new tradition. This tradition is the presentation of two corporate social responsibility awards: (1) the AmCham Canada Social Impact Award, which recognizes a U.S. based company that has made a positive social impact in Canada over the past year; and (2) the AmCham Canada True North Social Impact Award that highlights and celebrates a Canadian based company which has made a positive social impact throughout North America over the past year. These awards are intended to spotlight businesses that make a difference in their respective communities.
AmCham seeks to achieve several objectives through this award program: (1) Spotlight a business or enterprise that has been an asset to the cross-border business community during the past year; (2) Raise awareness of, and attract resources to, the industry or initiative promoted by the award winner; (3) Position the AmCham brand so that it viewed by members of the target business community as a good citizen on both sides of the border and a catalyst for positive change; (4) Provide a value-added platform for recognizing the initiative and energy of AmCham members on a cutting-edge issue or cause; (5) Highlight and further build upon positive and constructive collaboration between the United States and Canada through the generation of positive stories among the general public; and (6) Create a program that facilitates collaboration with the U.S. Government’s mission in Canada to further its public diplomacy efforts.
Last year’s Thanksgiving Celebration included the presentation of the AmCham Canada Social Impact Award to Johnson & Johnson for, among other items, increasing the effectiveness and quality of Indigenous midwifery within educational institutions. The Thanksgiving event also included the presentation of the AmCham Canada True North Social Impact Award to IBI Group for, among other items, building a holistic educational village that encourages collaboration and new opportunities that develop across disciplines and that transcend grade levels.
Please feel free to contact Carmina Jimenez-Weatherill if you have any questions or need any assistance.
MERGERMARKET - Regional Brief H1 2019
Although 1H19 M&A activity in Canada saw an increase in deal value compared to the second half of 2018, it declined by both deal value and deal count from 1H18. The cannabis industry has continued to attract significant deal-making in Canada, spurring domestic, as well as crossborder activity. Mining also bolstered M&A activity, with gold being the mainstay. Further, cobalt mining is becoming ever more important, as electric vehicle (EV) battery manufacturers plan to step up production.
BREAKTHRU BEVERAGE CANADA
ACG Toronto is pleased to announce a new partnership with Breakthru Beverage Canada for 2019 - 2020. Breakthru will be promoting and supplying Wine & Spirits to selected ACG events including, The ACG Golf Classic (June 2019) and the 17th annual Capital Connection Conference' on October 28 & 29.
Breakthru Beverage Canada is a full service Wine, Spirit and Beer broker in Canada. The Wine & Craft Spirits team is focused on providing a global selection of premium wines to licensees and collectors across the country. As a leading agent in the Ontario market, Breakthru Beverage Canada is able to provide direct delivery to consumers throughout the province as well as holiday and corporate gifting solutions. During this years golf tournament attendees were able to sample the Bibi Graetz Casamatta Bianco and Bibi Graetz Casamatta Bianco.
Like most of Bibi Graetz wines, the name is very evocative, “Casa-Matta”: the “Crazy-House”, is a bright and approachable version of Sangiovese. The idea of this wine is to be considered Bibi Graetz house-wine, fruity and fresh but at the same time a truly expression of Sangiovese. Bibi Graetz the winemaker has this to say about his 100% Sangiovese “This red is my favorite whenever I want a glass of wine. It is a Sangiovese with lots of cherry and raspberry, a nice acidity which helps with food and a round medium body with low tannins and vibrant backpalate”.
The Casamatta Bianco is our bright and approachable version of a white Tuscan blend. The Vermentino brings freshness, the Moscato Bianco elevate the aromatics and Trebbiano increases the balance and the harmony of the blend. The winemakers tasting notes “When I drink Casamatta Bianco I’m immediately projected on the Tuscan coast. This is a wine that reflects the soil, the sun and the perfumes of Maremma. The first impression is the floral notes of Moscato, orange and peach flowers, then in the palate you have the citrus of the Vermentino, pear and exotic fruits”.
MERGERMARKET - Regional Brief Q1 2019
M&A in Canada ended last year with a flat fourth quarter in terms of the number of transactions. The deal value was down significantly from the previous quarter. This year’s activity began in quite the opposite direction. The country saw a much higher total deal value than in 4Q18 but, at the same time, a sharp decrease in the number of deals. This was in line with M&A activity in the US, which experienced a similar trend.
On the other hand, Canadian targets proved to be attractive to foreign acquirers, as inbound activity by value rose significantly, while outbound and domestic activity shrank. Private equity activity was propped up by larger-sized deals but also saw fewer buyouts and exits than in previous quarters.
We are now in the second longest economic expansion in U.S. history. As the business cycle inevitably transitions, many middle market companies will struggle to maintain their growth trajectory and profit margins. How will the most agile middle market companies position themselves for long-term success, so that they can thrive through the next downturn and beyond?
Who better to provide you with perspective and wisdom than leaders of businesses that have achieved lasting prosperity and sustained it through several economic cycles as well as some of the fastest growing companies in the U.S.?
Don't miss your opportunity to learn how to create lasting prosperity for your enterprise, your employees, and your own career. Register TODAY! April 8 & 9, 2019, Hyatt Regency, Denver.
RSM Canada reports from Parliament Hill to provide comprehensive budget insights
Watch the summary of key outcomes of the budget announcements featuring National Tax Leader Maria Severino.
RSM Canada provides tax and middle market insight on 2019 Federal Budget
Incentives targeting innovation are welcomed, but tax measures to address global competitiveness fall short of middle market companies’ expectations
“Canadian middle market companies were hoping that Budget 2019 would have meaningful measures to support growth and global competitiveness,” said Maria Severino, national tax leader, RSM Canada. “Although Finance included some positive, targeted tax measures to support Canadian businesses, it deferred introducing any broad-based changes that could enhance competitiveness and reduce uncertainty.”
The launch of this Conference is a partnership between the ACG Chapters in Detroit, Western Michigan and Toronto. This program provided an overview for business leaders from the Mid-Market sector to network and learn more about Cross-Border Trade, Commerce, Investment and Public Policy opportunities.
Canada and the U.S. have had a long partnership in Trade and Commerce. In addition, the Province of Ontario and State of Michigan are leading trade partners. The new USMCA agreement was signed by all three parties in November 2018 and is now pending ratification by each country in 2019.
ACG Toronto's Board of Director & partner with RSM Canada, Ben Gibbons was interviewed on Middle Market Growth's magazine podcast during the joint conference. The interview weighs in on how trade, tariffs & cannabis are impacting middle market companies. Click here to listen to the interview.
Join ACG BC for the 18th Annual BC Middle Market Growth Conference on April 9th, 2019. This is Western Canada's premier M&A conference attended by close to 350 deal makers including corporate officers, national private equity firms, intermediaries, and financing sources.
DATE: April 8-9, 2019
LOCATION: Fairmont Vancouver Waterfront
The ACG Chicago Capital Connection is the premier networking event in the Midwest for companies in all facets of corporate growth and middle market deal making. This event presents the opportunity for deal makers to meet and greet with leading capital providers and investment bankers.
DATE: May 21-22, 2019
LOCATION: The Marriott Downtown Magnificent Mile
RSM Canada Celebrating Female Leadership
RSM Canada celebrates the women in the firm's network and their success stories throughout the month of March. Hear from talented female professionals and accomplished leaders in accounting and industry, as they provide advice to younger female professionals, and perspectives on fostering an environment that embraces diversity and supports female advancement.
In a video series, hear from:
• Adrianna Czornyj, partner at Persistence Capital Partners, about the importance of being true to yourself
• Samantha Horn, partner at Stikeman Elliott, on how she achieves balance, and
• Marina Glogovac, president & CEO of CanadaHelps about self-limiting behaviours that hinder a woman's advancement.
Hear advice from RSM Canada's leadership and get insights into how they support more junior female professionals nowadays.
Finally, members of the women's employee network group share their perspective on what motivates them, work-life balance and career growth.
Join over 2,000 leaders at The Art of Leadership for Women in Toronto on April 12, 2019, with keynote speaker Robin Roberts, Co-Anchor, "Good Morning America".
This unique one-day conference focuses on the topics and trends most critical to women leaders and features a remarkable collection of world leaders, business icons, and bestselling authors. Attendees will have the opportunity to learn improved ways of harnessing their individual strengths, elevating their skills, and leveraging their value in order to rapidly advance into significant leadership roles. REGISTER using promo code ACG40 to save $50 per pass, save an additional $50 per pass when registering 5 or more.
MERGERMARET - Regional Brief 2018
In 2018, disruptive sectors such as Technology were in the spotlight in Canada, while activity in historically dominant as well as more traditional sectors, such as Energy, Mining & Utilities (EMU) and Industrials & Chemicals (I&C) declined. Canadian private equity deals picked up by deal count in 2018, despite a marked decline in deal values from 2017. With 2018 ending on a stagnant fourth quarter, dealmakers will look for further signs of subdued M&A market conditions on the horizon.
MERGERMARKET - Cannabis Infographic
In a rush to build scale in the growing cannabis sector, 2018 has seen some of the largest acquisitions
to date. With legalization official in Canada and prohibitions loosening elsewhere, M&A activity has
gained momentum, proving that cannabis entrepreneurs are open to partnering with investors in both
the US and Canada.
MERGERMARKET - H1 2018 Trend Report
For insightful analysis of M&A activity in the region since the beginning of the year, the Canadian H1 report provides a combination of the current market overview, historical data analytics, and offers a forward-looking M&A outlook. The report also highlights Canadian M&A trends within energy, mining, and utilities as well as in private equity, which have seen increased activity in the recent months.
BLAKES - "Canadian Private Equity Report"
"On May 31, 2018, Blake, Cassels & Graydon LLP (Blakes) will release an in-depth study analyzing over 100 recent Canadian private equity buyout and investment transactions on which Blakes acted as lead or Canadian counsel. Unlike other private M&A studies that source their data from publicly available sources and are therefore, based on private transactions involving public companies, the Blakes study uses only proprietary data and focuses exclusively on transactions involving private equity funds, sponsors or portfolio companies. The Association for Corporate Growth Toronto (ACG) is focused on providing members with knowledge to drive and sustain corporate growth and supports the launch of new industry information, such as this Canadian Private Equity Study developed by Blakes."
Please click the Media Release below for more information.
ACG Toronto and ACG New York's breakfast seminar on March 23rd, featured the latest news and insights from the investment and political sectors on the future of NAFTA and other key trade agreements currently impacting the mid-market investment sectors in the U.S. and Canada.
In addition, ACG Toronto members attended one of the largest DealSource and Networking events hosted by ACG New York on the evening of March 22nd.
ACG Toronto and ACG New York co-sponsored the event "Cross Border Private Equity Investing between Canada and the US". Canada and the US have one of the largest trading relationships in the world. Private Equity (PE) investors on both sides of the border need to have cross border investments in the two countries in their value-added toolbox.